All of the following are reasons that management would want to make an investment for influence except:
A- to ensure that the company will have access to a large amount of cash
B-to diversify product offerings
C-to ensure a supply of raw materials
D-to influence the board of directors

A- to ensure that the company will have access to a large amount of cash

What is the most appropriate basis for the valuation of a new investment when properties or services are exchanged for stock?

On April 1, 2012, Cotton Inc. purchased as a temporary investment $100,000, face amount, 10% U.S. Treasury notes; they pay interest semiannually on January 1 and July 1. The notes were purchased at 102. What the purchase look like when recording it?

A DEBIT balance in the account Market Adjustment--Available-for-Sale Securities at the end of a year should be interpreted as the net_______.

A CREDIT balance in the account Market Adjustment--Trading Securities at the end of a year should be interpreted as the net_______.

When an entity reduces its interest in an investment in equity securities accounted for by the equity method, and changes to the fair value method, what is the initial cost value for purposes of subsequent changes in market value?

On January 1, 2012, Grain Company purchased investment securities costing $3,000 and classified them as available-for-sale. During 2012, Grain Company sold a portion of these available-for-sale securities with a cost of $1,800 for $1,500. The market value of the remainder of these securities available-for-sale at December 31, 2012, was $1,300. Grain prepares its statement of cash flows using the indirect method.

What represents the effect of these transactions on the statement of cash flows for Grain Company for the year ending December 31, 2012?

On January 1, 2012, Gore Company purchased investment securities costing $3,000 and classified them as trading securities. During 2012, Gore Company sold a portion of these trading securities with a cost of $1,800 for $1,500. The market value of the remainder of these trading securities at December 31, 2012, was $1,300. Gore prepares its statement of cash flows using the indirect method.

What represents the effect of these transactions on the statement of cash flows for Gore Company for the year ending December 31, 2012?

Which of the following is true?
A- Held-to-maturity securities should not be classified as current under any circumstance.
B- Trading securities can be classified as current or noncurrent depending on management's intent.
C- Trading securities should not be classified as current under any circumstance.
D- Available-for-sale securities can be classified as current or noncurrent depending on management's intent.

D- Available-for-sale securities can be classified as current or non-current depending on management's intent.

The only significant difference between the provisions of international accounting standards as promulgated by IAS 39 and U.S. accounting standards under FASB Statement No. 115 is________.

Which of the following is true regarding the provisions of IAS 39?

A- IAS 39 allows companies to choose between recognizing gains and losses on trading securities as part of net income or as part of stockholders' equity.
B- IAS 39 does not require unrealized gains and losses on trading securities to be recognized as part of net income.
C- IAS 39 allows companies to choose between recognizing gains and losses on available-for-sale securities as part of net income or as part of stockholders' equity.
D- IAS 39 requires gains and losses on available for sale securities to be recognized as part of net income.

C-IAS 39 allows companies to choose between recognizing gains and losses on available-for-sale securities as part of net income or as part of stockholders' equity.